Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
8 `  [- U: ^3 r3 R* wthese oil producer will go bankrupt or out of the business even if
  S& A5 ?% N+ Kcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
- {$ O1 f& \$ V  z9 xmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
$ u  D: O$ P' H. X2 X; {A year ago these things would have spiked the price of crude oil by at
# c6 W9 B  ]  o2 B. Bleast $50.00 per barrel. Today, oil price declined by a record amount.

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7 W  y3 C! |( b6 G8 vThere are several reasons the price of oil is decreasing in the face
3 h8 w6 i4 L- |. mof so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
5 i- J# @8 C, A( ]; u0 \Arabia.

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+ H  \- V* _8 _$ R' J: S2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

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+ A) k" d" I2 N9 L& {9 @3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
- T! h; S9 j5 f5 V8 f2 P% {; _9 Kpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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% N" V  W7 g7 ]+ c& _$ U4 B& W5. Virtually every restaurant in the US and all food processing plants
7 @) g/ ~) F- G) ?9 W; m! L+ y5 nare now selling their used oil to bio-diesel producers. Every pork,
5 E! ~4 T/ _/ F2 Y& [  R4 G9 scattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
# t4 I0 K. K; o$ kproducing 30,000 gallons of bio-diesel per day from pork fat.

. A* U, `# i) _. c% ]  b7 T
# K, e" x$ }3 j# X7 O* r8 A' v6. There are 99 nuclear reactors in various stages of planning and
6 w* Q% y6 M! b+ e9 O; bconstruction around the world at this time. Several hundred more are
, D' _$ u' N- o' N. o/ n" aexpected to be built in the future. Much of the energy they produce
. |/ H" |% K+ f6 U. dwill replace oil.

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7. Every company in any form of transportaion business is replacing
2 E2 `  J- z' ~2 p2 b0 e  \( g. polder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
9 ?) m) s5 G; \0 h) xequipment.
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' ~% p& {: D0 L+ p! u0 X* v: ]
Airlines are flying airplanes with bio-fuel. They are finding the bio-
7 e& X+ t3 A9 T% ?' K8 nfuel is cleaner and performs better than jet fuel.
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0 `5 v4 ^  R, l1 ^$ n0 Z) w. l/ R
( `! H6 }5 |# i% m5 q8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
: V% z9 }5 o5 p* Yavailable at very little cost or risk. The gas is displacing crude
oil.


5 q  p# h) I. \* k& N6 L9. Coal is being transformed into a clean burning liquid fuel. The CO2
4 E* {) a' J" T# Qproduced as a byproduct is sold to oil companies for injection into
oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
) D4 B- g0 T8 |% g! osource. Three new wind turbines are being erected every day in the US.


Each of the above by itself will not make a large difference in the
( q. F: a$ D/ q9 P/ Vprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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# c" N: d+ \/ V: j: T( ]
With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
: Y# C- f! f; |  D. j1 PIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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7 I0 S+ i3 @3 R3 m, V
! x+ f3 z+ a3 N7 k/ l) }  JThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only